I'm wondering if it's possible to have a negative balance with Bitcoin. Can the value of Bitcoin go below zero or can I owe more Bitcoin than I actually have in my wallet?
One scenario where over-leveraging can cause losses is short selling. When an investor shorts a cryptocurrency, they are betting on its price to decrease.
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MartinaThu Dec 19 2024
Another scenario is buying on margin, where investors borrow funds to purchase more cryptocurrency than they can afford with their own capital.
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KDramaCharmThu Dec 19 2024
Crypto investments can result in losses that might lead to a negative balance.
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KpopHarmonySoulMateThu Dec 19 2024
Such losses are often caused by over-leveraging, which is a common practice in the cryptocurrency market.
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ClaudioThu Dec 19 2024
Over-leveraging can lead to significant losses, especially when the market moves against the investor's position.